ONGC board approves follow-on share sale offer

ONGC board approves follow-on share sale offer

Mumbai: State-run explorer Oil and Natural Gas Corp’s board on Tuesday approved a follow-on share sale plan, but the company will file papers with the markets regulator Sebi (Securities and Exchange Board of India) only after it gets the greenlight from the government, its chairman said.

“This (offer date) is the job of the DoD (department of disinvestment). We are waiting for the communication. It all depends on the government," A.K. Hazarika told Reuters.

The company had hoped to launch the offer in July.

The offer, expected to raise up to $2.8 billion, has been delayed by several months as rising crude oil prices and consequently higher subsidy burden kept the state-run firm away from the market.

India raised diesel prices last week, which is likely to bring down the subsidy burden on state-run oil companies, including ONGC.

ONGC shares closed at Rs284.80, 0.2% higher in a Mumbai stock market that rose 0.4%.